Property News

Mumbai real estate prices may not fall: Oberoi

Real estate prices in Mumbai are unlikely to fall due to limited supply, real estate developer Oberoi Realty said.

“All input costs and raw material costs are going up and supply is constrained due to lack of approvals. Unless supply increases, the real estate prices in the city are unlikely to fall,” company Chairman and Managing Director Vikas Oberoi said.

The company has a portfolio of 35 completed projects across Mumbai with about 20 mn sq ft to be developed in the near future, he said, adding that the company is confident of launching its Worli and Mulund projects in Mumbai in FY2012-13.

Reuters

Oberoi pointed out that following the court order, the company is now 100 percent owner of the Worli property and it is awaiting Commissioner’s approval. The company is also developing a 3 million sq ft project at Mulund, he said.

The company’ consolidated revenue rose by 7.31 percent to Rs 230.79 crore for the first quarter of the current fiscal ended June as against Rs 215.07 crore in the year-ago period.

The consolidated profit after tax for the April-June, 2012 quarter declined by 4.90 percent at Rs 100.80 crore as against Rs 105.77 crore for the same period of 2011-12.

The company said that Oberoi Mall contributed Rs 19.85 crore to the revenue for the reporting quarter, its commercial project Commerz contributed Rs 11.26 crore, while the Westin Mumbai Garden City accounted for Rs 22 crore of revenue.

“Our results for the first quarter of this fiscal have been satisfactory in the light of the challenging global environment and the domestic macroeconomic headwinds. Our business continues to generate healthy cash flows from operations and we have managed to maintain strong order book,” he said.